Mexico: Selected Issues
IMF Staff Country Reports, November 5, 2019
Source details
- Canonical URL
- Mexico: Selected Issues
Other formats
Bibliographic details
- Published: November 5, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513519043.002
Key findings
- Upgrading basic public infrastructure, and road infrastructure, raises productivity among firms, including small and micro firms.
- Greater government spending on road infrastructure will support efforts to raise productivity and growth over the medium term.
- Mexico’s infrastructure quality has been on a steady decline.
- World Economic Forum indicators of perceived infrastructure quality show Mexico broadly in line with—or even outperforming—its emerging market and regional peers.
- Infrastructure quality and access are likely to weaken further at current investment rates.
- Spending trends compare particularly poorly to investment needs in the case of roads investment.
- According to the Global Competitiveness Index, the perceived quality of Mexico’s transportation infrastructure is broadly in line with peers.
- The note provides evidence of the role of infrastructure investment in boosting productivity.
Evidence and indicators
- Uses World Economic Forum indicators of perceived infrastructure quality to compare Mexico with emerging market and regional peers.
- References the Global Competitiveness Index for transportation infrastructure quality comparisons.
- Presents firm-level productivity effects showing benefits for large firms as well as Mexico’s large number of small and micro firms.
Policy implications and recommendations
- Increase government spending on road infrastructure to support productivity and growth over the medium term.
- Prioritize investment to prevent further weakening of infrastructure quality and access given current investment rates.
- Focus spending to address the particularly poor alignment of spending trends with roads investment needs.
Content in this bundle
- Mexico: Selected Issues; IMF Country Report No. 19/337; October 17, 2019